Diamond is not a pipeline

By
Dr. Luis Contreras
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683

“Things are not always what they seem; the first appearance deceives many” – Phaedrus

On August 29, 2005, it rained in southeastern Louisiana. It was not a conventional storm. People knew a storm was nearby but what happened next was hard to imagine. No one was prepared and FEMA resources were too little, too late. The devastation was not caused by fire and brimstone. Katrina was triggered by rain!

In 1920, the first Arkansas oil well outside El Dorado, produced eight barrels of crude per day. Many other wells were soon drilled, and Standard Oil built the first pipelines. The 1921 Arkansas Code 23-15-101 says, “all pipeline companies operating in this state are given the right of eminent domain …” Building crude oil pipelines seemed like a good idea at the time.

In 2014, Plains All-American made a $900 million bet, based on fourteen words written a long time ago, deceived by the appearance of the Arkansas Code and the lust for profits. PAA underestimated the people of Arkansas and abused southern hospitality. Let’s look at the details.

Like storm, pipeline is a generic term whose meaning has changed over the last hundred years. What PAA is constructing today and the crude they plan to transport in the 440-mile transmission line across Arkansas has nothing in common with the 1920’s conventional oil transport. The Plains Illegal Fracking Export Snake (PIFES) is “an illegal shareholder owned, high-pressure 1440 psi, bulk shale crude transmission line, with a capacity to transport 200,000 barrels per day, from Cushing Oklahoma to the Gulf of Mexico.”

PIFES does not have a permit for massive interstate transport of toxic chemicals or a security bond to cover damages. Transporting hazardous materials is regulated in Arkansas by several agencies, including Homeland Security Department of Emergency Management, Department of Health, Department of Environmental Quality, and other state and county security agencies.

Transmission lines are approved when there is a proven public need justifying taking private land, and when the benefits to Arkansans outweigh known risks. PIFES was not granted a Certificate of Environmental Compatibility and Public Need. PIFES is not a utility, and it is not an Arkansas Public Utility.

Private property rights are fundamental. Taking perpetual easements by force is an extraordinary power granted by the Public Utility Commission for projects deemed to be “for the long-term benefit of the people of Arkansas,” with proper notification, full disclosure of the proposed routes, and public hearings to minimize damages to landowners, wildlife, rivers, and nature. An independent environmental impact study, and consultation with state and federal agencies are required. PIFES skipped all the steps.

PAA owns storage tanks and terminal facilities for crude exports. In anticipation of Keystone XL, PAA announced a new pipeline interconnect and increased capacity storage at Cushing. PAA plans to export shale crude from the Bakken, with a pipeline from Cushing to the Gulf.

PAA has a long record of toxic chemical spills and irresponsible management. According to PHMSA, the federal Pipeline and Hazardous Materials Safety Administration, PAA, out of more than 1,700 pipeline operators, is one of four with the most infractions.

PAA operators are known to “keep pumping until the line leaks.” PAA never pay for damages. In 2011, PAA was responsible for the largest crude spill in Canada. Over 28,000 barrels spilled from the Rainbow pipeline, the second major spill from the 220,000 barrels per day line. Greenpeace-Canada described the discharge as an “environmental crime that went unpunished.”

PIFES is a Master Limited Partnership offering high-return, “tax-free” dividends, paid with funds from shares sold to other investors. The house of cards comes down when the project is cancelled.

PIFES is not public infrastructure. Why would the U.S. try to sell low-quality, high-cost shale oil at a loss, when there is a glut of low-cost conventional oil?

When is the best time to kill a deadly snake?

If the snake is in your house, say under your bed, kill it, don’t wait for a better day.

Dr. Luis Contreras

3 COMMENTS

  2. Please don’t kill snakes, the name is used here without evil intentions, like in the Bible.

    The word “snake” often elicits a variety of responses in people ranging anywhere from, “Ewww! I’m afraid of snakes” to “Snakes are such beautiful animals.”

    Snakes, whether they be venomous or not, are often persecuted and deemed as evil creatures by our culture and associated folklore, as they don’t exactly give people the warm and fuzzies.

    Every year, thousands of snakes are killed due to habitat loss, disease or direct killing of individuals by humans that simply fear or misunderstand them.

    However, snakes are incredibly beneficial to humans and will cause us no harm if we give them the respect they deserve.

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